Your friend Isaac is 40 years old.  He is married to his wife Madison and they have 3 small children.  Both Isaac and his Madison have good paying jobs and are comfortable financially.  Isaac has life insurance coverage equal to approximately 8 times his annual salary.  Madison’s life insurance coverage is for $2,000. They are trying to determine if they have enough life insurance.  He has asked you for some advice.  Do you think they have enough life insurance and if not, what changes would you recommend?  

 

Isaac and Madison’s Financial Data

(assume that their income is equal - $4,500 each)

Monthly income Living expenses Assets Liabilities

$    9,000 5,975 210,840 99,520

Answer rating: 100% (QA)

Note Life insurance is a contract between the policyholder and the insurance company where the life ... View the full answer